Deutsche Post faces complaint by publishers
BVDA,the German association of publishers of advertising papers, and BDZV, the German newspaper publishers’ association, are reported to have lodged a complaint with the German antitrust authority against Deutsche Post, the German national postal service operator. They are hoping to prevent the postal group from continuing to deliver an advertising journal in a pilot project together with a free TV programme information magazine.
Publishers believe that Deutsche Post is violating competition regulations by offering advertising agencies services at prices which do not cover costs and are possible only because, allegedly, the company is able to subsidise them with income from its letter delivery activities, in which it still enjoys an extensive monopoly. Deutsche Post has denied the accusation of cross-subsidising and assured that the service will be offered at market prices which will cover costs. The advertising journal is being supplied in the north German cities of Hanover and Hamburg.
